Dec 9 (Reuters) - Devon Energy ( DVN ) said on Monday

that CEO Rick Muncrief, a U.S. shale industry veteran, will step

down effective March 1, and will hand over the reins to Chief

Operating Officer Clay Gaspar.

Muncrief, 66, was named CEO in January 2021 following the

company's merger with rival WPX Energy.

The oil and gas producer's shares rose marginally in early

trading.

Its shares have gained nearly 90% since the $2.56 billion

WPX merger was completed in early 2021. However, the Energy

Select Sector SPDR Fund, the largest U.S. energy

exchange-traded fund, has more than doubled in value during the

same period.

Devon had lost bids to acquire at least three of its peers

as its shares were spurned as acquisition currency, Reuters

reported earlier this year, citing people familiar with the

negotiations.

The company lost to ConocoPhillips' ( COP ) $22 billion bid

for Marathon Oil, failed to beat Occidental Petroleum's ( OXY )

$12 billion bid for CrownRock, and unsuccessfully courted

Enerplus before it was sold to Chord Energy for $3.8 billion.

In July, Devon announced the acquisition of some Bakken

shale assets from EnCap-owned Grayson Mill Energy in a

cash-and-stock deal worth $5 billion.

Under Muncrief's leadership, Devon's total production

increased to 728,000 barrels of oil equivalent per day (boepd)

in the third quarter, from 499,000 boepd at the end of the first

quarter of 2021.

Muncrief will continue to serve as an adviser until his

planned departure as an employee in the second quarter, the

Oklahoma City-based company said.

RBC Capital Markets analyst Scott Hanold said the

appointment of Gaspar as CEO was anticipated by most energy

investors and expects the transition to be "seamless".

Gaspar, who also joined from WPX, will receive $1 million as

annual base salary and a cash bonus target of 130% of the base

salary, Devon revealed in a regulatory filing.